Econet: 2010 annual results presentation

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Econet annual resutls presentation to analysts

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Econet: 2010 annual results presentation

  1. 1. Econet Wireless Zimbabwe Limited Final results For the financial year ended 28 February 2010
  2. 2. Highlights for the year to February 2010 CAPEX Switching Capacity SMSC Capacity US$ 160 million Increase from 1,2 million Increase in SMSC capacity to 4,9 million from 160 mps to 510 mps Coverage Subscribers Traffic 200% increase in coverage Increase in connected Intra Econet traffic now around Zimbabwe subscribers from 1,2m to comprising 80% of total the current 4,0m
  3. 3. Network developments A quality network for our millions of customers • The inspired family now running on three switches • A network capacity of 4.9 million • About 200 new base stations commissioned during the year
  4. 4. Network Developments Constructing robust infrastructure
  5. 5. Network coverage Covering the big family! • Building over 422 new high capacity base stations. • 100% GPRS/EDGE in all network covered areas • Extend 3G coverage to outside Harare • All urban areas and most rural areas have been covered
  6. 6. The future network Fibre optic network deployment •Laying down optic fibre to ensure a quality network
  7. 7. The future network Fibre optic network rollout Lusaka Chirundu •Fibre project links directly MOZAMBIQUE Tete to all major cities & towns Makuti ZAMBIA 290kmMashonaland Central Karoi in Zimbabwe Nyamapanda Bindura Shamva Mashonaland WestMutoko Chinhoyi 175kmMurewa 240km NAMIBIA Harare Kasane Chitungwiza Victoria Falls Hwange Gwayi Chegutu Kadoma Marondera Beatrice 360km Rusape •Central African countries to be linked by high capacity 440km 440km Kenmore KweKwe Chivu Mutare Chimoio Matabeleland Nyamandlovu Midlands Gweru BOTSWANA North Bulawayo Nsiza Floradale 297km optic fibre Birchenough 100k Zvishavane Masvingo Bridge Plumtree300km •International connectivity m Gwanda Ngundu Masvingo Checheche 288km Triangle Rutenga Phase 1 Phase 2 Matabeleland South Makado Francistown Alko Siding through undersea cables in Phase 3 Beit Bridge SOUTH AFRICA South Africa & Mozambique
  8. 8. The future network WiMax network coverage  4G - Mobile WiMAX  All IP Network providing guaranteed data .  Complementary service to 3G  High mobility  Powerful bandwidth scalability.  Speed – fastest broadband offering.  Widest WiMAX coverage.
  9. 9. Subscribers Growing a formidable customer base 4,500 4,000 4,000 3,500 3,551 3,000 Subscribers (thousands) 2,500 2,000 1,500 1,000 1,200 500 654 634 457 - Feb-06 Feb-07 Feb-08 Feb-09 Feb-10 Mar-10
  10. 10. The mobile market share Inspired to be the market leader 27% Econet Other 73% Source: Internal company reports & industry estimates
  11. 11. Penetration rates Econet determined to put Zimbabwe on the map South Africa 102% •Increased penetration rates Botswana 97% Mauritius 84% from below 15% in February Namibia 68% 2009 to current levels of Swaziland 51% Zimbabwe 40% around 40% driven by Econet’s Angola 37% resolve to provide world class Tanzania 34% Zambia 33% telecoms service to all the Mozambique 27% people of Zimbabwe Lesotho 25% DRC 22% Malawi 13% 0% 20% 40% 60% 80% 100% 120% Source: Internal company reports & industry estimates
  12. 12. An innovative product profile A strong brand profile
  13. 13. Inroads into the under serviced areas “YourFone” a service for all “People in the developing world are getting more access at an incredible rate, far faster than they got access to new technologies in the past.... The Digital Divide is rapidly closing.” (World Bank, February 2005)
  14. 14. Exceptional customer services Ensuring a quality service •A dedicated 50-Seater Call Centre has been constructed and was commissioned in April 2010.
  15. 15. 2009-10 exciting journey We value our customers!
  16. 16. Launched Low Cost Handsets Enabling access to phones for all budgets! •Develop the mobile market through the procurement of both “entry level ” and “top of the range” handsets
  17. 17. Corporate social investment Giving back to society! •The scholarship fund financed 300 deserving students under the scholarship • Over 50 000 disadvantaged students were assisted with school fees and food packs • The Trust financed the reopening of Zimbabwe College of Health Sciences, 4th year medical students fees, cholera interventions, water tablets & health information dissemination
  18. 18. Financial review Kris Chirairo, Finance Director
  19. 19. Group Key Performance Indicators The overview USD thousands YTD Feb-10 Revenue 362,777 EBITDA 179,286 Profit After Tax 113,210 Capex Investment 160,066 Total Assets Base 397,744 EBITDA margin 49% Debt to Equity Ratio 87% Return on Assets 28% Return on Equity 68% Blended ARPU US$17.97 Earnings per share 66 cents Dividend per share 14 cents
  20. 20. Summarised balance sheet Growing a strong business full year full year USD thousands 28-Feb-10 28-Feb-09 Assets Property, Plant & Equipment 267,537 137,376 Intangible Assets 1,573 30 Other Non-Current Assets 75,487 18,555 Current Assets 53,147 26,001 Total Assets 397,744 181,962 Equity and liabilities Total Equity 165,485 88,872 Interest Bearing Liabilities 143,227 22,815 Other Liabilities 89,032 70,275 Total equity and liabilities 397,744 181,962
  21. 21. Group income statement full year USD thousands Feb-10 Revenue 362,777 EBITDA 179,286 Depreciation & Ammortisation (21,111) Operating Profit 158,175 Investment Income 1,874 Net Financing Costs (11,927) Profit Before Taxation 148,122 Taxation (34,912) Profit After Tax 113,210
  22. 22. Cashflow statement Huge cash injection into the network infrastructure full year USD thousands 28-Feb-10 Cash flows from operations 102,374 Investing Activities (171,391) Finance Activities 77,390 Increase in cash 8,373 Movement in cash: At start of year 5,551 Increase 8,373 At end of period 13,924
  23. 23. The year ahead Douglas Mboweni, CEO
  24. 24. The year ahead The Group next year •Further network expansion in capacity and geographical coverage •Roll out of green power base stations •Increase sales and distribution footprint and electronic channels •Expanded roll out of 3G service

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